Fractal Breakout Entries with Proposed Order Block Zones

Summary

The document describes a crypto breakout strategy that tracks local highs and lows with fractals, then enters long when price crosses above a stored upper fractal and short when it crosses below a stored lower fractal. The break can be checked using candle wicks or closing prices, and each level is eligible for another signal after a new fractal is identified. The published backtest settings specify BTC-USDT futures on a daily chart, but no performance results are reported.

The accompanying explanation says breakouts should create demand or supply zones around recent candles and describes adaptive zone sizing and visual status tools. However, the supplied source has the order block creation, display, color updates, and checklist code commented out; its active logic enters on fractal breaks without those confirmations. It also uses one chart timeframe rather than multiple periods. The text flags false breakouts, slippage, ranging markets, and sensitivity to the fractal lookback, and suggests volatility, trend, volume, and stop-loss filters. These are proposals, not tested improvements.

Key ideas

• The strategy records highs and lows when they qualify as fractals over a configurable lookback.
• A crossing above the stored high triggers a long entry, while a crossing below the stored low triggers a short entry.
• The break test can use candle extremes or closing prices.
• The accompanying source does not implement the described order blocks because their code is commented out.
• The document provides BTC-USDT futures backtest settings but no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.